Listen and subscribe to Decoding Retirement on Apple Podcasts, Spotify, or wherever you find your favorite podcasts. It’s the question nearly everyone asks: How much money do I need to retire? There are plenty of benchmarks. Fidelity, for instance, says you should save 10 times your salary by age 67, while T. Rowe Price recommends 7.5 to 13.5 times your income. But Jean Chatzky, host of the HerMoney podcast, said those rules only scratch the surface. “You and I can throw out rules of thumb until we are ...

Simply answer a few quick questions about yourself and your finances, and Advisor.com will match you with a financial professional who can offer advice for your unique financial situation. From here, you can schedule an initial consultation for free with no obligation to hire.If you find yourself facing a layoff, or are worried about being fired before retirement, you could consider working with a financial advisor to plan a budget for your new situation. Ensure that you can draw down your savings at a rate ...

Retirement planning is complicated. Fewer retirees can rely on pensions, so more people have to find retirement income elsewhere and navigate issues like managing taxes while withdrawing from different kinds of accounts, when to take required minimum distributions, and determining the appropriate asset allocation for their retirement portfolios. Here are three tricky decisions that confront people planning for retirement today. Decision 1: How Much to Withdraw Each Year in Retirement It’s impossible ...

As prices and inflation continue to rise, planning ahead for retirement has become even more important. But how can people assess their eventual costs and ensure they don't exceed their sources of income when the future is so difficult to predict? On this week's episode of Decoding Retirement, host Robert "Bob" Powell speaks with Jean Chatzky, host of the HerMoney Podcast, about her proven strategies to build up the savings you will rely on through your golden years. Jean discusses the importance of calcula ...

The vast majority of employers who offer retirement plans specifically offer 401(k) plans. Though increasingly popular, 401(k)s are not terribly easy to understand, let alone navigate. In fact, a poll last year found that nearly two-fifths of Americans don’t even know what a 401(k) plan is. Find Out: I Asked ChatGPT When I Could Retire — I Couldn’t Believe the Answer For You: How Far $750K Plus Social Security Goes in Retirement in Every US Region How do you explain in simple, digestible terms what a 401( ...

It seems the 4% rule is now the 4.7% rule. Three decades after financial planner William Bengen came up with a simple yet elegant solution to help clients balance their retirement spending, the creator of the 4% rule has updated this widely suggested practice for modern times. Must Read “The primary reason for the change is that my research has gotten more sophisticated,” he told USA Today [1] in an article published Sept. 1. Bengen was originally looking for a way to explain how much a person could sp ...

Some of your research looks into this concept of a fresh start. I was hoping you could talk about that a little bit, what it is and why it is so powerful when it comes to setting and maintaining financial goals. Yeah, absolutely.So, it turns out that there are moments in our lives when we are more motivated to make a change than on a mundane Wednesday. So, um, moments that feel like fresh starts, moments that feel like new beginnings in our life stories, uh, are moments when we feel a little bit of a discon ...

SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. A 62-year-old with $1.5 million in a traditional IRA may be wise to consider converting $150,000 per year to a Roth IRA to avoid required minimum distributions (RMDs). The annual withdrawals from retirement accounts that are mandated by RMD rules can raise your tax bill in retirement by adding to your taxable income, even if you don’t need or want the income to cover your expenses. Strategic Roth conversi ...

For many Americans, retirement isn’t just about getting by — it’s about living comfortably and maintaining a middle-class lifestyle. Earning $12,000 a month ($144,000 a year) in passive income, for instance, could make that possible, covering everyday expenses while still allowing for travel, dining out, and other luxuries. But reaching that level of income in retirement requires more than just a large nest egg. Your savings must also be resilient enough to handle inflation, market swings, and the risk ...

Group 1 - The executive order signed by President Trump allows Americans to include alternative assets such as cryptocurrency, real estate, and private equity in their 401(k) retirement savings [1][2] - This order is seen as a significant win for the cryptocurrency industry, which has been advocating for the inclusion of private assets in retirement plans [2][4] - Following the announcement, the price of bitcoin increased by 1% in the stock market, indicating a positive market reaction [2] Group 2 - The executive order opens up a "huge new pool" of retirement funds for alternative asset managers, allowing for greater diversification in retirement portfolios [4] - However, private companies are not mandated to include cryptocurrency in their 401(k) plans, and they must assess the associated risks and liabilities before doing so [5] - The incorporation of alternative assets into retirement accounts is expected to be a gradual process, with traditional index funds being recommended for the average investor [7]